There has been much written by the press recently regarding the selection of a qualified intermediary for your 1031 exchange transaction. The focus of the media has been on two (2) recent problems with qualified intermediaries. They do not fully explain that the two problem QI's were acquired by problem individuals over the last two (2) years. These two individuals acquired the 1031 exchange companies specifically to use client 1031 exchange funds to finance other operations and they got caught. It is unfortunate that two (2) individuals have cause so much harm to innocent parties for the rest of the solid 1031 exchange companies operating in the industry.
I thought that it would be a good time to revist what to look for when evaluating and selecting your qualified intermediary.
The 1031 exchange Qualified Intermediary (often referred to in the real estate industry as an Accommodator or Facilitator) is a crucial part of any successful 1031 exchange transaction. You should therefore exercise significant care when choosing your own Qualified Intermediary because of the critical role it will play in administering your 1031 exchange transaction.
The purpose of this article is to assist you, as a potential Exchangor, in developing an understanding of the risks involved in selecting your Qualified Intermediary and the questions to ask as part of your due diligence. The due diligence process should not be taken lightly.
Monday, May 28, 2007
Subscribe to:
Posts (Atom)
Posts
